Market will follow FM speech

Indian shares rose on Friday (the first day of March series), owing to the optimistic Economic Survey presented in the Parliament, which raised some hopes of the deliverance of a good budget this week. The Survey estimated growth at 7-7.75 percent for the next fiscal while pressing for more reforms, subsidy cuts and sticking to the fiscal consolidation plan. However for the week, benchmark indices dropped by more than two percent driven by profit booking, disappointing Rail Budget, weak rupee and slumping crude oil prices. The Sensex dropped by 554.85 points or 2.34% to end the week at 23,154.30; and the Nifty 50 also tumbled by 181.00 points or 2.51% to 7,029.75. The broader markets saw the deepest cuts; the BSE Midcap and Smallcap indices were down 2.35% and 3.25%, respectively. The Indian rupee hit a fresh 30-month low standing at 68.79 and for the week was lower by 16 paise to 68.62 against USD dollar.

U.S. stocks wiped out earlier gains to finish generally lower on Friday as oil reversed and inflation data increased expectations for a rate hike in the coming year. But all three main indices closed higher for a second week in a row. The S&P 500 shed 3.65 points, or 0.2%, to close at 1,948.05 and for the week, it rose 1.6%. The Dow Jones Industrial Average dropped 57.32 points, or 0.3%, to close at 16,639.97 for a weekly gain of 1.5%. Only the Nasdaq Composite rose, adding 8.27 points, or 0.2%, to close at 4,590.47 and it climbed 1.9% in last week.

WTI crude jumped 3.2% in the past week amid hopes that major producers will limit output. On Friday, oil slipped 0.9% to USD 32.78 a barrel. Brent retreated from a near two-month high to settle at USD 35.10 a barrel, down 0.5% on the day but still up 6.3% for the week.

European stocks climbed on Friday as well as for the week. The Stoxx Europe 600 rose 1.5% Friday, capping its second week in a row of gains. The U.K’s FTSE 100 was up by 1.4% to 6,096.01. Germany’s DAX 30 pushed up 2% to close at 9,513.30, and France’s CAC 40 gained 1.6% to 4,314.57. The European Central Bank’s next policy meeting on March 10 may be convened to boost its stimulus.

Markets in Asia traded in the mix on Monday. Japan's Nikkei 225 index was up 0.6% , extending its 1.39% gains from the previous week. The Kospi traded flatly while Hong Kong's Hang Seng index fell 0.59%. Chinese markets tumbled with the main Shanghai composite down 3.43%. Australia’s S&P/ASX 200 Index advanced 0.57%.

While on domestic front, A SGX Nifty 50 index future for February series traded down 32 points at 7,033. Indian markets are likely to open flat. Investors and analysts will be focused on union budget 2016.